Opg Power Ventures Share Discussion Threads

[jozo] 30/4/2019 16:29

Can't say I'm particularly impressed with the ridiculously low LTIP. Seems far more like a S(short)TIP.All they need to do is signify an intent to return significant chunk of surplus cash to shareholders and the share price will meet the target.Only positive I can see is that it might help hold Gupta back from any stupid moves and destroying shareholder value.

[beangrinder] 30/4/2019 16:14

It's largely all positive...apart from management having a laugh at our expense. As Buffett once said "Invest in a company that could be run by a monkey...because someday it might be".

[turbocharge] 30/4/2019 11:08

Trying to find some positives:

Perhaps the average tariff will continue to increase this year, and the reduction of loan by £20.6m to £69.9m is progress...?

[smithless] 30/4/2019 10:17

Well, I've started buying again, as it's fundamentally cheap. Personally, I hate LTIP's and I can see why any longterm holder would be seething. But this is AIM and I've seen a lot worse.

[beangrinder] 30/4/2019 09:23

Andy. The shares are worth 30p all day long. The disgrace is that the board are going to get shares for simply waiting for the paint to dry.

[andycapp1] 30/4/2019 08:38

I think this is now uninvestable. Gupta simply rides roughshod over corporate governance because he can. I don’t know whether it’s stupidity, naivety or arrogance. But the LTIP issue is astonishing.

[lizardman_] 29/4/2019 15:01

Agree also. For context, the previous LTIP target was 100p

[andycapp1] 29/4/2019 11:09

Another cretinous RNS. They lose £100m on Gujarat and then want us to give them 5% of the company. I just don’t get it. Who advises them???

[igoe104] 29/4/2019 07:20

rading update for the year ended 31 March 2019
OPG (AIM: OPG), the developer and operator of power generation plants in India, announces its trading update in respect of the full year ended 31 March 2019 ("FY19").
Summary
For the full year ended 31 March 2019:
-- Profits are expected to be in line with market expectations
-- Total generation (including deemed) of 2.71 billion units, down 2 per cent from FY18
-- Plant Load Factor ("PLF") at Chennai was 75% compared with 77% in FY18
-- Average tariff was Rs5.41, up 10 per cent from FY18 as a result of tariff increases during the year for captive customers
-- GBP20.6 million (Rs1.86 billion) of term loan principal repayments made, reducing term loans balance to GBP69.9 million (Rs6.31 billion) at 31 March 2019
Arvind Gupta, Executive Chairman of OPG, commented:
"We are pleased to report continued strong operational performance in FY19 and expect to report profits for our FY19 results to be in line with expectations"

[andycapp1] 27/4/2019 16:43

Flowerhead you are back with your inanities!!

[azalea] 27/4/2019 11:48

From an international atmospheric pollution, damage to human health, and rising global warming, perspective, EV will take on an ever increasing role in reducing the problems. However,in Germany's case, following its plans to decommission all its nuclear electricity generating plants, the benefits will be somewhat negated by its continued use of coal to meet a notable part of its demand for electricity.

China forecasts EV will total 2m in 2020 and increase to 7m by 2025; clearly points the way other industrialised nations are already beginning to follow.

In India's case, the limiting factor will be its ability to install charging points in every major town and city. However until the government increases the number of nuclear powered electricity generating plants; coal will continue to play a dominant role in meeting the ever increasing demand for electricity. To that end, barring further admim based errors, OPG future should be assured for many years to come.

[andycapp1] 21/4/2019 20:19

The free cash yield could be 30-40% and given the repayment schedule on the debt I think they ought to pay 50-70% of free cash out. Alternatively pay a sustainable 3-4p and then a special. But give a commitment to do this. That they don’t I simply don’t understand. The shares have rebounded from utterly daft levels but have stagnated at 20p odd. The issue is (I’m a stuck record) Gupta. He is a terrible presenter, carries a rather arrogant air and I don’t think pays his board or shareholders enough respect. Result is an utter misalignment of share price and intrinsic value. He doesn’t seem to get it. That said this is cheap!

[oldboffy1] 21/4/2019 16:02

Good comments andycapp1. Apart from freight rates that are slowly creeping back up the other 2 important costs - coal - still below $40 and the $/rupee rate around 69 should ensure that the profit forecasts are met.It will also be interesting to see the level of cash and reduction in debt.The dividend will tell us something about future plans. I would be happy with something around 1.5p - giving a good yield but still building up the cash.

I think that the appointment of Dmitri is positive and believe that the Company will not be embarking on any marginal growth projects any time soon. That is not to say that OPG will not seek growth but only when credibility has been rebuilt.

I see that OPG (presumably Dmitri) will be presenting at a Shares Magazine evening in Edinburgh on May 22nd. Hopefully there will be some year end news out before the evening.

[jozo] 11/4/2019 10:48

Agree PPVN,Especially with coal prices remaining low.Would also love to see opg signal an intent to return excess cash to shareholders in a meaningful way over next few years - the share price would fly imo and this would also go someday to restoring faith of investorsjozo

[ppvn] 11/4/2019 10:36

Guess it could be building up prior to results? Still got a way to go, but reasonable opportunity here given that the FD gave guidance of around £35m profit and reaffirmed expectation in their recent update.

No nasty surprises coming out of Gupta, just chugging along and bringing in the cash.

[turbocharge] 05/4/2019 15:22

There seems to have been an upsurge in buying activity today, not sure of the reason...

[mikro1] 05/4/2019 14:23

My knowledge is limited but as far as I understand Newcastle coal is Australia and is dropping due to recent chinese restrictions on australian coal. Opg on the other hand uses indonesian(4200)coal

[andycapp1] 04/4/2019 15:45

Sure it can but don’t know how CV compares? Or rather I guess MWh per tonne used or something like that?

[jozo] 04/4/2019 09:31

Thanks STur,That would certainly explain a few things.Can opg use Newcastle as well?

[jozo] 04/4/2019 07:19

Anyone understand why Newcastle coal price is dropping like a stone (May futures now at $79 as opposed to $116 at its peak last year) while Indonesian coal price appears to be slightly up from recent lows?Is there a correlation?Is there a simple supply/demand issue?Currency movements?Also, am I right in thinking that opg can also use Newcastle coal and benefit from these low prices?Thank you allJozo